Commercial Finance - Commercial Hire Purchase

Commercial Hire Purchase (also known as Asset Purchase or "CHP") is similar to leasing, except the customer claims the allowable depreciation on the equipment plus interest as a tax deduction, as opposed to claiming the actual lease payments, as with a finance lease. The choice between the two will depend on which option maximizes the company's tax deduction. This in turn will depend on the term and the depreciation rate allowable on the equipment.

Payment Structure

The customer can structure the payments so that nothing is owed at the end of the term or a small "balloon" payment (like a "residual" in a finance lease) can be used to offset and reduce monthly payments.

Advantages

• Unlike a finance lease, no restrictions apply to term structures.
• Tax ownership lies with lessee - interest expense and depreciation are claimed.

Disadvantages

• For those on the "cash" method of accounting, GST is claimed and amortized over the duration of the loan period.
• Amount financed inclusive of GST - interest expense is therefore higher.

Equipment Finance Broking Firm

Established in 1990, Melbourne Finance Broking is regarded as one of the most progressive equipment finance broking firms in Australia. With over 40 staff around the country and realizing enormous finance volumes (commanding significant buying power), the broking house deals with over 30 of Australia's banks and lending institutions, including some with exclusive agency.

Heavy Equipment Financing

Each broker or broking team within Melbourne Finance runs their own business specialty. The corporate entity, Heavy Equipment Finance Australia (HEFA), was introduced by one of the teams in 2005 to more accurately signify their heavy equipment financing specialty, as well as better reflect their interstate expansion.

The HEFA team is unsurpassed in its experience and dedication to servicing the industries utilization heavy machinery, including Earth-moving, construction, road making, mining, demolition, forestry and agriculture.

If you want more information on HEFA and would like to check out their range of products and deals, you can visit them at http://www.hefa.com.au

Paul Jennings works with one of the largest firms dealing in finance for heavy machinery in Australia. In his free time, he also writes informative articles about this specialized field.

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Top 5 Methods To Finance A Car Purchase

There are a number of financing options available to those looking to purchase a new car, with methods and sources available to suit a wide range of needs and circumstances. It is important that you look at the options that are open to you before you start looking for a car, as the methods for which you are eligible may determine where you have to get your car from and what sort of price range you should be looking at.

Some methods of finance are more expensive than others, and your credit rating and circumstances will determine which finance options are open to you. Below you will find five popular methods of financing the purchase of a car:

1. Bank loan: A number of banks offer specialist car loans to those with decent credit, and in some cases you can enjoy extra benefits with these loans, such as free HPI checks, discounts on insurance cover, and free or cheap breakdown cover. In most cases you will need to have good credit to get a bank loan for your car purchase. The amount that you will be able to borrow will depend on a number of factors, including your income, employment status, and credit rating.

2. Homeowner loan: If you are a homeowner, do not have a good enough credit rating for a bank loan, and do not want to look at options such as dealership finance or HP, you may want to consider a secured loan, which is a loan that is secured against your property. You can enjoy longer repayments periods with this sort of loan, and this means that you can reduce the monthly amount that you have to pay out on your loan.

3. PCP: Personal Contract Purchase, or PCP, is where you can make monthly repayment on your car, with a large chunk of the value deferred to the end of the loan in the form of a balloon payment. At the end of the term you can return the car and pay nothing else for it, pay the balloon payment and keep the car, or continue with the plan and switch to a newer vehicle.

4. HP: Hire purchase, or HP, is another common form of car financing, and this is where you make monthly payments on the car for a specified term. You continue to make the payments throughout the term, after which the car becomes yours.

5. Dealership finance: Many dealerships offer finance these days, but this form of financing can be expensive. There are a number of dealerships that offer their own finance to those with bad credit, and for those with no other options due to their credit rating this is often the only way to get a newer vehicle.

Loans4 provide homeowner loan solutions for homeowners. Please visit http://www.loans4.co.uk for the latest finance related news.

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